Halfords snaps up car servicing firm Nationwide

Halfords said that the new ‘Halfords Autocentre’ business would be a major source of growth for the firm. In addition to Nationwide’s existing 224 sites, it is expected that Halfords will roll out 200 new centres, creating 1,000 new jobs.

Shares in Halfords rose 10 per cent to hit a five-week high of 432.9p following the announcement this morning. The new price values the firm at £870m.

Expansion: Halfords has been linked with bids for a number of firms

Halfords hopes the deal will help it double earnings to £20 million in its third year of ownership, while it should also benefit from cross-marketing opportunities - and City analysts appear to agree.